So I read the scene graph for dummies and found that spatials attached to nodes move relative to the node so when the node changes location, its children should do so too. Now, I have three models (as spatials) attached to a node. When i change the direction or rotation of the node, nothing happens to the spatials but when I change them individually, it affects them. Any suggestions to why it is behaving like this?

It does not change. I put this statement after setting the local translation of the pathway node:
System.out.println(floorModel.getLocalTranslation());But the translation of the floor model stayed at where it was before

Yes, that's an intended behaviour! The LOCAL translation of the floorModel does not change when the parent moves! The thing what is changed is the WORLD translation! When you print out the world translation before and after you will see a difference!

What is the difference between World and Local coordinates?World coordinates of a Spatial are its absolute coordinates in the 3D scene (this is like giving GPS coordinates). Local coordinates are relative to the Spatial’s parent Spatial (this is like saying, “I’m ten meters left of the entrance). - from jME Wiki

Domenic's right.Use System.out.println(floorModel.getWorldTranslation() ); before and after.You will see the difference.A spatial's world translation is its distance from the world's origin point/center O(0,0,0).A spatial's local translation is its distance from the parent node that it's attached to.So if you have moved the parent node,the child's distance from its parent remains the same locally.From the wiki:"World coordinates of a Spatial are its absolute coordinates in the 3D scene (this is like giving GPS coordinates). Local coordinates are relative to the Spatial’s parent Spatial (this is like saying, “I’m ten meters left of the entrance)."

So I want to move three models by moving its parent node which is the pathway node in this case. But i don't see any change graphically, the three models stay in their same place. You are right that the world translation changes but how can i combine all three of them in one node and change all their positions by changing its parent node's position?

I do that, as you can see from the above code I posted. But i do not see any graphical difference in the position of the three models. Their world translation changes but no difference if i look through the fly camera.

Try setting the offset to something large. Depending on how things are scaled and how they are positioned relative to other scene objects, it may be difficult to tell the difference. If you print out the world position and it is as expected (no mistakes in parenting/positioning), then that is truly where the objects are. If they don't look right then it's an optical illusion, camera positioning mistake, or something else throwing your view off.

You can also try to add a reference box directly attached to the rootNode to (0,0,0). This way you'll see that the other objets are in different places if their worldtranslation says so. (be sure that the box World translation is always 0,0,0)

Ok so when i try moving the node without any physics control, everything moves fine. But as soon as I add rigid body controls to the models attached to the node, the models stops moving whenever i change the position of the node. Any ideas why?

Ok so when i try moving the node without any physics control, everything moves fine. But as soon as I add rigid body controls to the models attached to the node, the models stops moving whenever i change the position of the node. Any ideas why?

That's what non-kinematic rigid body controls do. They control the position and motion of the controlled spatial.